Year-end tax adjustment is probably no longer a strange phrase for those of you living and working in Japan. According to the new tax law, from 2023 onwards, when registering dependents, it is mandatory to submit proof of remittance of 38 man or more.
So does this condition apply to husband or wife when registering for year-end tax adjustment? In this article, let’s find out about this issue with STEPJOB – TOKUTEIGINO JOB CONSULTING COMPANY, JAPAN’S NO. 1 PRESTIGIOUS ENGINEER.
1. What is year-end tax adjustment?
- Year-end tax adjustment is the process of recalculating the surplus or deficit of tax after comparing the total income tax deducted from each salary payment in a year (from January 1 to December 31) with the total tax payable based on the total income of the employee in a year. Simply put, the amount of income tax deducted from the monthly salary by the company is only a temporary deduction.
- At the end of the year, after determining the total annual income of the employee, a declaration will be made to accurately calculate the tax amount.
If the income tax collected is more than the tax payable, the tax office will refund you. If the income tax collected is less than the tax payable, you will have to pay the extra tax. 2. When does year-end tax adjustment begin?
- Depending on the company, the time to make year-end tax adjustments will be different.
Usually, it will be from around October to December if you work for the same company.
In case you declare yourself at the tax office near your home, this period will be extended a little bit to January of the following year, maybe even to the end of March.
However, you must send the proof of money transfer within the period from January 1 to December 31 of the year of tax adjustment.
3. Subjects applying for tax exemption
- ・ 扶養者 (supporter): are relatives who have a family relationship with you within 6 generations, such as parents, siblings, children, etc.
(16 years old or older). If they are relatives of your wife or husband, they must have a family relationship with you within 3 generations.
When registering these people as supporters to apply for tax exemption, if they are between 30 and 69 years old, you are required to submit a proof of remittance of 38 man (excluding transfer fee).
People under 16 years old are not eligible to register for tax reduction. - ・ 配偶者 (spouse): Is your wife or husband. If you declare these people to register for tax reduction regardless of age, you can send any amount of money, it is not required to send 38man even if they are between 30 and 69 years old.
If you have any questions regarding administrative procedures when living and working in Japan, do not hesitate to contact STEPJOB at the Stepjob website or Stepjob’s Facebook (for Tokuteigino), Facebook for this engineer visa.
In addition to being a support agency (登録支援機関) for finding jobs (Tokuteigino, IT engineers, CAD, …) for foreigners studying and living throughout Japan, we also help you answer all questions related to life in Japan.
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